Rally Crypto Firm Pulls the Plug on Its Sidechain as Crypto Industry Struggles – Here's What Happened
Social token platform Rally has announced the closure of its sidechain operations due to a lack of funding. The project warned users that their crypto assets will become stranded as tokens on the Rally sidechain are not transferable to mainnet.
In an email on January 31, Rally said its sidechain will begin sunsetting today. "This means that after today, the site will no longer be supported and you may experience a degradation in services or it may simply become inoperable," the platform reportedly said.
Rally warned that users won't be able to access their crypto tokens and NFTs once the site shuts down since these assets are not transferable to the mainnet.
The project said they had a "challenging" year in 2022 along with the broader crypto market. The fallout of Terra's decentralized stablecoin UST prompted a series of bankruptcies, including the implosion of major crypto lenders like Celisius and BlockFi, and even the collapse of cryptocurrency exchange FTX.
"As most of you are aware, 2022 was a challenging year not only for the platform, but also for the entire crypto industry. The team has worked relentlessly to try to find a path forward, however the challenges and macro headwinds are too overwhelming to overcome in the current environment."
Founded in 2018, Rally is a platform for creators, media personalities, bands, and esports teams to launch social tokens, which allow them to monetize their work. It is comparable to other subscription platforms like Patreon, but with a more dynamic structure.
Fans and followers could purchase the Rally tokens launched by their favorite creators to support their work. The tokens offered various perks, ranging from a chance to meet in person with their favorite creators to even
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